Alcohol duty rises ‘jeopardise 75,000 jobs’ |
Charlie Wright, thegrocer.co.uk 26 February 2009 In: People, Industry news
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Up to 75,000 jobs could be lost from the drinks industry if duty on alcohol continues to rise, according to new research.
A report for five major industry bodies has warned that Government taxation policy on alcohol could lead to sales declining by 11% over the next five years, prices climbing by 17% and tax income falling by £1.6bn.
The research was compiled for a coalition of drinks bodies including the British Beer & Pub Association and the Wine & Spirit Trade Association.
The research, included in the drinks industry’s Budget submission to Whitehall, warns that 75,000 jobs could be lost if the Government presses on with plans to increase tax on alcohol by 2% above the rate of inflation.
“We urge the Government to reconsider before it is too late for thousands of wage-earners and their families,” said a spokesman for the group. “Our industry is being hit just as hard as any other UK manufacturing and retail sector.”
He added: “We are not asking for a handout. We only ask the Chancellor to abandon further tax increases [that] will force more job losses.”
Constellation Wines announced 50 job losses across its UK operations last December, which it blamed directly as a result of the Government's increase in duty in November.